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Star spotlight: AAA-rated Train - I try to invest like Buffett but won't buy him
by Sarah Miloudi on Sep 18, 2013 at 07:30
UK equity star Nick Train has said he tries to invest like Warren Buffett, but Berkshire Hathaway is unlikely to make it into his top-performing funds.
As part of our AAA-rated manager series to coincide with the launch of Citywire's new ratings, Train revealed some of the secrets behind his success and said he tries to add to his good ideas rather than chasing new ones.
Despite being positive on the outlook for UK equities over the next three to seven years, Train (pictured), said he would be surprised if new names entered his CF Lindsell Train UK Equity portfolio.
'The last one to enter was two years ago and that was Heineken,' Train said. 'I'm an advocate of Warren Buffett, and as he said, often the best thing to do is if you own good companies buy more of that good thing.'
But asked if he would buy into Buffett's Berkshire Hathaway conglomerate, Train said it was not a company he would back.
'The thing about Berkshire Hathaway is that it has a massive insurance division, which is [a sector] we do not understand,' he said.
According to Citywire's revamped ratings, Train is one of the most consistent investors across the active manager universe.
He is currently rated AAA under the Citywire categorisation, previously a three-rung system which has now been extended to include a new '+' ranking.
This additional ranking recognises all investors who outperform their benchmark, and can be used to help investors spot emerging new talent.
Citywire still tracks the performance of managers versus their typical peer, and again UK equity veteran Train holds his own. Over three years he has returned 82.5%, compared to 45% by the average manager in the UK All Companies sector.
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